Still dealing with a $2.3 billion net loss in Q1 2025, BitCore Technologies is now reporting a sixth consecutive quarterly loss, placing them further into the dollar drain. Once deemed a cornerstone in cryptocurrency and decentralised infrastructure, the company has undergone firings of plenty of mid-to-high-level positions in the past year due to an ‘aggressive Bitcoin acquisition plan’ under the leadership of CEO Alex Dermott. The hostile market conditions have put further strain on the company’s already unstable balance sheet and are emerging as a problem for analysts and investors alike.
BitCore losing the ability to turn any profits, accumulating debt, and managing a collection of digital assets showcased in their portfolio has led to an interest drop of 18% drop in stock during after-hours trading. Maintaining a market cap of over $10 billion for years, this was the first occurrence post-2021.
Volatility is bound to affect us for the time being, no doubt, but we firmly believe in the creation of long-term value by putting resources into infrastructure geared around digital assets,” declared the company’s CEO, Alex Dermott, showcasing his unshaken nerve during their earnings call with investors.
Not enough to spur optimism among shareholders, still.
A Strategy Under Fire
For the last two years, BitCore’s strategy has focused on moving away from traditional SaaS products and evolving into a “Web3 treasury powerhouse,” which meant converting most of their treasury into Bitcoin, Ethereum, and other layer-1 tokens.
Now, the company holds over 175,000 BTC alongside ETH, SOL, and AVAX, which at current market rates is over $9.6 billion. However, the timing of their acquisitions has been an issue.
Around 62,000, Dermott doubled down. Says Clara Young, a digital asset strategist at Bell & Fisk Capital. They front-loaded most of their positions during the 2024 peak. Now, with BTC sitting at roughly $54,300, they’ve locked in over a billion in unrealised losses.
Critics point out that when it was necessary to create a hedge or diversify, BitCore ignored fundamental macro signals like the Fed’s unchanging rates or Asia’s harsh crypto tax regime, choosing instead to divert into RWA tokenisation and infrastructure protocols.
Breakdown Part One: Finances For BitCore in 2025 Q1
- BTC Holdings: 175,043 BTC (avg cost: $58,400)
- Net Loss: $2.3 billion (in comparison with Q4 of 2024, which was $1.4 billion)
- Revenue: $378 million, down 34% YoY
- Free Cash Flow: -$624 million
- Operating Expenses: $971 million (which is up 12% Qoq)
BitCore’s ever-growing operational cost includes an on-chain validator infrastructure that includes a data centre network. The facilities only operate at 47% capacity, according to audits, these facilities are “a heavy drag on cash flow”, and sustaining through internal audits makes everything.
Shaky Investor Satisfaction
BitCore became available on the market over a year ago for 50.64, now sits at 14.67. That’s a 71% decrease since their market high of 50.22 in November 2024.
Longtime shareholder Chainhouse Capital publicly stated “strategic alternatives” such as a change in leadership and asset liquidation. This is unprecedented for them as they’re a crypto venture capital firm and long-term investors.
BitCore is no longer the company able to pivot nimbly as an innovator that it once was,” quoted the letter. “It has failed spectacularly in its risk management. We implore the board to consider every possible course of action, including changing the CEO.
In 2022, BitCore led the elite in institutional DeFi infrastructure.
The company excelled in various rapidly expanding fields, including:
- A DeFi insurance protocol (sold in 2023 to NexusLayer)
- An NFT crafting toolkit (closed after Q2 2024 due to losses)
- An AI-crypto fusion chatbot for compliance (abandoned in the beta stage)
Analysts argue that the company’s obsession with being labelled a “Bitcoin bank” caused them to overlook far more viable options of operating with bond tokenisation, L2-as-a-service (L2aas), and enterprise ZK-Rollup integration.
While everyone else was building real-world rails, BitCore kept stacking coins,” stated Kelsey Mann from Merrill TechWave. That’s great during bull runs—but not so much when tokens hover or flatline.
Debt and Dilution Risks
To survive, BitCore has:
- Raised $1.7 billion in convertible debt starting August 2024
- Diluted shareholders through a 12 % equity increase last quarter
- Added $250 million in high-yield debt with an 11.8 % APR
Their debt-to-equity ratio now sits at 2.6x, which Moody’s Analytics flagged as ‘high risk for a non-yielding asset-heavy portfolio.
Regardless, Dermott insists, tokenised treasuries will outperform in the next supercycle.
Executive Pay Raises Draw Backlash
Also sparking ire from investors, BitCore revealed in its 10-Q that average executive compensation rose 22% YoY, with Dermott’s total exceeding $13.4 million, including performance stock options pegged to 2026 BTC price targets.
Retail investors took to X (previously Twitter) in droves to call for Dermott’s sacking, and were vocal with BitCoreBlunder and DermottDownfall.
Is a Turnaround Possible?
Some analysts say it’s possible—provided the company acts quickly.
Analysts suggest:
- Liquidate a portion of their BTC holdings to bolster cash flow.
- Hire a COO with a TradFi background.
- Enterprise SaaS comes back into focus with token-controlled compliance APIS.
- Validate that infrastructure tokens are emitted to partner chains.
They need to get lean and real,” said Matty Rios, partner at BeaconBridge VC. “The party is over. Now it’s about survival and repositioning.
Crypto reacted to the news with a lukewarm response. Bitcoin did experience slight dips, but maintained its status above $54,000.
Other crypto-related stocks took a hit as well:
- CoinTrust: -5.2%
- LatticeNode: -3.8%
- Meta Valley Labs: -2.4%
This suggests that investors are beginning to regard crypto equities more like conventional technology, responsive to profit, debt, and overall leadership within the organisation.
BitCore’s future: fall further into the path of decentralisation or decline?
The corporation will conduct its annual shareholder meeting in June, where stakeholders would like to see a “showdown” regarding the company’s strategic vision.
BitCore has the assets, the talent, and the brand, commented private investor and BitCore shareholder since 2020, Dawn Suri. What it lacks now is a plan, accountability, and realism.
Dermott, for now, continues to remain headstrong.
Rounds come and go. But we’re not building for ‘rounds,’ we’re building for cycles.
Insights: Maturity in Web3 Lessons
BitCore captures a far-reaching narrative: the borrowing of crypto is an industry during investment mania. In reality, they lure snap capital and dream of unfettered Wall Street-style burning Bitcoin until every last shred of delight gets frosted with scrutiny.
Over time, companies are going to have to blend a decentralised vision with operational discipline. If BitCore listens, it still has a chance.
FAQs
BitCore’s loss stemmed primarily from unrealised losses on its massive Bitcoin holdings, rising operational costs, and underperforming infrastructure assets.
BitCore has shifted its treasury model to accumulate Bitcoin and other cryptocurrencies as long-term assets, believing in the future value of decentralised finance.
Investor confidence has declined, with shares dropping 71% from the 2024 peak. Analysts and shareholders are now calling for leadership changes and strategic pivots.
BitCore is considering partial asset liquidation, cost-cutting, and restructuring. Analysts recommend a return to enterprise SaaS and spinning off validator infrastructure.
While BitCore holds significant digital assets and has a strong brand, its survival depends on strategic shifts, better risk management, and rebuilding investor trust.
